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By A. E. Lindquist

This Bureau of Mines publication identifies areas having sufficient coal reserves to support synthetic natural gas (SNG) development and summarizes those areas having the highest potential. Capital requirements, mining and coal cost factors, water availability, and coal-quality data pertinent to SNG production are presented. Evaluation of individual coal reserve blocks was based upon coal and water requirements of the Bureau of Mines Synthane coal gasification process.

Jan 1, 1977

By L. A. Conley

This report, covering the period January through December 1976, contains abstracts of articles related to cost engineering and economics for chemical and petroleum plants, mining, and other mineral industries from the following periodicals: 1. Air Pollution Control Association Journal 2. Chemical Engineering 3. Chemical Engineering Journal 4. Chemtech 5. Coal Age 6. Coal Mining and Processing 7. Combustion 8. Drilling-DCW 9. Electrical World 10. Engineering and Mining Journal

Jan 1, 1977

By L. E. Green

For shortwall mining to be profitable, the additional capital investment of about $1 million for shortwall roof supports must be offset by decreased total operating costs and/or increased coal production. The Bureau of Mines therefore conducted a demonstration project to compare shortwall and room-and-pillar mining. Daily two-shift production from the bureau of Mines-Beth-Elkhorn Corp. shortwall demonstration n project averaged 975 tons of raw coal, compared with 905 tons from a room-and-pillar unit operating undo r similar conditions. The estimated direct operating costs for the shortwall and room-and-pillar unite were $4.21 and $4.03 pier ton, respectively. The profitability of the shortwall system was found to depend not only on the increased depreciation cost of the powered roof supports and the decreased cost of supplies and materials but also on such factors as the fixed and variable indirect costs and the selling price of the coal. Shortwall mining was demonstrated to be a viable alternative to room-and-pillar mining.

Jan 1, 1977

By Charles L. Kusik

A study was conducted for the Bureau of Mines, U.S. Department of the Interior, to provide information which will lead to an increase in the recycling of mineral materials, in order to help conserve the Nation's mineral resources. Data were collected on energy requirements to recycle prompt industrial and obsolete scrap for nine metal commodities: Iron and steel, aluminum, copper, zinc, lead, stainless steel, titanium, tin, and nickel and nickel alloys. Major process routes for recycling were considered, starting from the first collection point through scrap preparation, transportation, smelting and/or refining to the molten metal, ingot, or other semi- finished form approximately equivalent to a primary metal of a similar composition. Available data for 1976 were collected on the amounts of each metal commodity recycled by major scrap categories. In addition, energy requirements were estimated for separating municipal solid wastes into four major categories: Refuse-derived fuel, and magnetic, aluminum, and glass cullet fractions. Finally, areas of research were identified to enhance recycling and/or increase the efficiency of energy use.

Jan 1, 1978

By Karl E. Starch

This Bureau of Mines report is a background study of severance taxes on mineral production. The rates, bases, and other features of State severance tax legislation as of March 1978 are presented, as are the amounts of State severance tax collections for fiscal year 1977, Some statistical comparisons between severance tax collections, total State tax collections, and total value of mineral production in the States involved are presented to portray the relative importance of severance taxes both in State tax revenue systems and in mineral industry revenues. A general discussion of the purposes and principles of taxation, the unique nature of a mining enterprise, the various types of taxes imposed on mineral production, and the character and rationale of the severance tax and its impacts on mining firms sets the severance tax in perspective. A bibliography of materials on the severance tax is included.

Jan 1, 1979

By John Paul Gries

This Bureau of Mines study outlines the history of 11 major metal ore deposits or districts that are relatively new discoveries. The oldest operation is the White Pine mine, where major exploration was initiated in 1929. Discovery (delineation of ore bodies) dates range from 1948 to 1976. All but two of the deposits, Quartz Hill in Alaska and Flambeau in Wisconsin, are or shortly will be in major production.

Jan 1, 1979

By J. A. Eisele

The Bureau of Mines has reviewed the literature related to the recovery of A1203 (alumina) from coal ash. A small amount of unpublished data is also reported. Of the processes studied, the alkaline-sinter process is the most promising from a technical standpoint. However, owing to the high cost of processing coal ash, the dispersed location of powerplants, and the domestic availability of higher grade alternate materials, coal ash does not rank as a primary source material for replacing imported bauxite.

Jan 1, 1979

By Rodney D. Rosenkranz

The Bureau of Mines evaluated the potential supply of primary copper from domestic mines and deposits and found that increases in copper price will be required in order for many domestic deposits to continue production. As part of the study, a tonnage-price relationship was developed indicating the quantity of copper that could be produced economically from known deposits at various copper prices and at various rates of return on the required capital investment. Costs of production are based on estimated capital and operating costs for mining, concentrating, transporting, smelting, and refining. Direct and indirect operating costs, recovery of investment, and return on investment have been included in the smelting and refining costs. Capital and operating costs are calculated in January 1978 dollars, and byproduct credits are based on January 1978 prices. Known domestic copper mines and deposits contain nearly 92 million metric tons of copper in about 14 billion metric tons of demonstrated mineralized material. These tonnages represent the current domestic copper reserve base. Approximately 74 million metric tons of copper are recoverable from the reserve base using existing technology. Of this quantity, slightly more than 50 million metric tons are economically recoverable assuming a price of 51.00 per pound of copper, credit for the recovery of byproducts, and a 15-percent rate of return on capital investment. Approximately 60 percent of the copper occurs in mines that were producing at the time of the study.

Jan 1, 1979

By Robert C. Weisner

Current production costs and market conditions in the potash industry of the Carlsbad area were studied to determine the potential values of the potash mineral resource that would be lost or foregone if the Waste Isolation Pilot Plant (WIPP) facility is constructed on the proposed site in that area. The purpose of the WIPP project is to investigate the possibility of developing a nuclear waste disposal plant in the salt formations at the site. Analyses were made of all potash deposits determined to be in the site. Mining and processing under the most favorable recovery systems were considered. Value determinations were based upon estimated operating and capital costs of current mine-mill operations in the Carlsbad area. This study was made for the Energy Research and Development Administration (ERDA) by members of the Federal Bureau of Mines Minerals Availability System staff.

Jan 1, 1979

By Robert L. Davidoff

Growing domestic and global demands for mineral resources have established an imperative need for developing comprehensive, versatile mineral supply analysis evaluation tools. The Minerals Availability System (MAS) of the Bureau of Mines is meeting this need with its computerized Supply Analysis Model (SAM). This paper describes the SAM system and the quantitative methods used by the MAS for mineral supply analyses. The MAS evaluating process consists of deposit identification, tonnage and grade determinations, engineering and cost evaluations, financial analyses, and supply curve generation. MAS has developed this computerized system primarily to facilitate the maintenance of data information for the constructing of commodity supply curves. The SAM system presently has the analytical capabilities of simultaneously (I) evaluating many mineral deposits, (2) updating mineral supply information to reflect inflationary changes in costs and prices, and (3) conducting sensitivity analysis to determine impacts on mineral supply under various conditions. Many potential users in both government and industry will find the SAM system a valuable tool for policy analysis, forecasting, and planning. The SAM system has been constructed so that any types of information that are similar to the data elements in the MAS data base may be used to perform supply studies. The storage space needed for the SAM system?s programs, files, and output data is approximately 14 million characters.

Jan 1, 1980

By Charles L. Kusik

As part of an effort to establish the extent of the domestic chromium supply that could be exploited in case of adverse changes in international chromium production and trading patterns, a two-part study was conducted for the Bureau of Mines, to assess the domestic availability of critical metals in scrap containing significant amounts of chromium. This report describes the part of the study that deals with wrought stainless steels and heat-resisting alloys. Data were collected on types of scrap, sources, quantities, and ultimate disposition, leading to the conclusion that In 1917 about 62,000 tons of contained chromium was unrecycled. Unrecovered obsolete stainless steel scrap accounts for most of these uncollected chromium values. Error margins in the amount of uncollected scrap are estimated to be 10 to 20 percent.

Jan 1, 1980

By G. R. Peterson

The Bureau of Mines evaluated the potential supply of cobalt from known domestic resources, both as a primary product from some deposits and as a byproduct from others, and found that U.S. production could play an important role in meeting U.S. cobalt needs by the mid-1980's. This production would be of a relatively short duration, however, with production declining significantly before the year 2000. As part of the study, a tonnage-price relationship was developed indicating the quantity of cobalt that could be produced from known cobalt-bearing deposits at various primary commodity prices and at a 15-percent rate of return on the required capital investment. All capital and operating costs are calculated in August 1980 dollars, and commodity prices are based on August 1980 prices. Known U.S. cobalt-bearing deposits which represent the current U.S. cobalt reserve base contain some 310,800 metric tons of cobalt in slightly over 1 billion metric tons of demonstrated mineralized material. Approximately 37 percent of the cobalt contained in the reserve base is considered recoverable using existing technology. Of this quantity, some 87,000 metric tons of cobalt is economically recoverable assuming a cobalt price of $25 per pound, a copper price of $1 per pound, and a lead price of $0.40 per pound. Assuming that the cobalt price decreases to $15 per pound, keeping copper and lead prices constant, the quantity that is considered economically recoverable declines to some 45,700 metric tons. Domestic cobalt consumption in 1979 was 7,900 metric tons (17.4 million pounds). Currently, no primary cobalt is produced from domestic resources, and none has been produced since 1971.

Jan 1, 1981

By Anthony M. Opyrchal

This Bureau of Mines study assesses the economic significance of the Florida phosphate industry to selected counties in Florida, the State of Florida, and the Nation: it also includes a brief survey of the industry's international impact. Based on forecasts of Florida phosphate production in 1981, and using constant 1977 dollars. estimates are given for 1981 for regional and national output the value of this output, income, and employment created by the phosphate industry in Florida, Federal, Stale, and county tax revenues generated by the State's phosphate industry are also estimated for 1981. The concentrated impact of the phosphate industry on certain areas of Florida and on the State?s regional industries is examined using economic base analysis complimented by an industrial complex approach. The industry's impact at the Stare and national levels is examined through input- output analysis. In addition, an attempt to forecast for 1990 the effects of constraints on phosphate rock mining as a result of economic conditions and other factors is included as an appendix to the report. Also discussed is the phosphate industry's importance to the U.S. balance of trade: U.S. agricultural production. Including forward linkages; the U.S. sulfur industry; and the phosphate industry's importance to the production of fluorine and uranium by- products from fertilizer manufacturing.

Jan 1, 1981

These proceedings consist of papers presented at three Bureau of Mines Technology Transfer Seminars on ergonomics in the mining industry. These seminars were held in December 1981, and covered topics relating to ergonomics and mining in the areas of the man-machine interface, and design of the work environment. This area of research is directed toward reducing accidents traditionally associated with human error.

Jan 1, 1981

By Paul R. Thomas

The Bureau of Mines evaluated the impact of the depletion allowance upon the economic availability of copper from domestic deposits. The potential long-run percentage depletion deduction, cumulated over the life of the properties, was estimated at approximately $2.5 billion for producing properties and up to $11.7 billion for nonproducers. The income transfer, in the form of higher Federal income tax payments if the allowance were repealed, was estimated at $1.5 billion for producing properties and up to $8 billion for nonproducers. The percentage depletion allowance, through its role in determining Federal income tax liability, was found to be very significant in affecting profitability. Repeal of the allowance could result in major domestic copper availability reductions at all price levels, now and in the future, as a result of reduced profit margins for current producers, and postponement of development decisions for nonproducers. It was demonstrated that a 50-percent reduction in the percentage depletion rate applicable to copper would also result in a significant decrease in profitability for nonproducing properties. For producing properties, the percentage depletion rate on copper was shown to be less significant than the income limitation that is placed upon the total amount of the depletion deduction. Repeal of the minimum Federal tax provision was shown to be significant in enhancing profitability for both producing and nonproducing deposits. The report concludes that the percentage depletion allowance operates as an important method of capital recovery and production incentive.

Jan 1, 1982

By Phillip N. Yasnowsky

This Bureau of Mines report summarizes State severance taxes imposed on minerals and mineral fuels, provides a hypothetical example of how a State severance tax affects selected components of a firm's income statement, and uses the Bureau's Minerals Availability System (MAS) to estimate the effect of assumed changes in State severance tax rates on copper recovery cost at given levels of potential copper availability. A reduction of the rates to zero or a doubling of them results in changes in costs that are of the same order of magnitude as the cost of transporting copper to the United States from major foreign producing countries.

Jan 1, 1982

With IIT research institute as a cosponsor, this seventh mineral waste Utilization Symposium was funded by the Bureau of Mines through its Division of Mineral Resources Technology. Environmental scientists and engineers from five countries (Canada, Netherlands, Austria, England, Guatemala) besides the United States participated in the symposium, which was held Oct. 20-21, 1980, at the Chicago campus of IIT Research Institute. Of the 25 papers presented on the reclamation and recycling of mining and mineral wastes, municipal solid waste, industrial waste, and scrap metal, 21 are summarized herein.

Jan 1, 1982

By Herbert R. Babitzke

The Minerals Availability System (MAS) was formally established by the Bureau of Mines in May 1975 to provide current appraisals of the engineering and economic availability of nonfuel minerals for consideration in the formulation of both domestic and foreign minerals policy, Domes- tic mineral property reports are developed by the Bureau's four Field Operations Centers, and foreign data are obtained under contract. This site-specific information is subsequently subjected to engineering verification and economic evaluation, and the results are analyzed and published as Minerals Availability System Appraisals. The deposit-specific data are also entered into the computerized MAS data base, where a subset of this information, the Mineral Industry Location System (MILS), is available to the public in the form of computer graphics and listings. Other MAS products are also described. The Bureau's MAS personnel are frequently involved in special engineering and mineral economic projects for other Federal and State agencies. MAS personnel also work closely with the private sector, both in the area of mining and processing cost estimation, and as a source of nonproprietary mineral deposit information.

Jan 1, 1982

By Catherine C. Kilgore

The Bureau of Mines investigated the availability of manganese from known domestic occurrences. Eight of these deposits were found to have demonstrated resources totaling 420 million metric tons with an average grade of 10 percent contained manganese. They were found to be submarginally subeconomic. Economic evaluations of the eight deposits resulted in incentive prices ranging from $8 to almost $35 per long ton unit (22.4 pounds) of contained manganese. Comparing these prices with the current market value of $1.70 per long ton unit of manganese clearly illustrates the submarginal nature of the domestic ores analyzed. These domestic resources would probably not be developed except in the case of an extreme national emergency. Production from the eight deposits would take 3 to 6 years to develop, and the final product would be manganese ore concentrate, which could be used in the production of ferromanganese. If preproduction development began in 1981, annual production would peak in 1987 with 900,000 metric tons of recoverable manganese. Thereafter, production would see a steady decline unless additional resources were located or technologic improvements were made to allow processing of lower grade material, or unless mining and processing of ocean manganese nodules began to take place.

Jan 1, 1982

By Jim F. Lemons

The Bureau of Mines Minerals Availability System collected and analyzed data for 34 nonlaterite and 9 nickeliferous laterite domestic chromite deposits in order to assess their viability as sources of chromium under present technologic and economic conditions. These 43 deposits, none currently in production, contain approximately 6.3 and 22.3 million metric tons of Cr203 at the demonstrated and identified resource levels, respectively. Approximately 4.6 and 15.6 million metric tons of Cr203 are recoverable at the demonstrated and identified levels, respectively, for the 34 nonlaterite deposits. None of these resources are economically recoverable at January 1981 market prices. Production of metallurgical-grade chromite (market price $128 to $144) would require a minimum chromite market price of $237 per metric ton. Chemical-grade chromite production (market price $74 to $85) would require a chromite market price in excess of $188 per metric ton. From the 34 nonlaterite deposits, roughly 5.4 and 17.6 million metric tons of ferrochrome could be produced at the demonstrated and identified resource levels, respectively; however, a minimum market price of $770 per metric ton of ferrochrome would be required to stimulate production. The nine nickeliferous laterite deposits were not evaluated through production stages because of uncertainties in process technology and cost.

Jan 1, 1982